An activity-based costing system involves identifying the activity that causes the incurrence of a cost; this activity is known as a:
A)cost driver.
B)cost applier.
C)direct cost.
D)cost object.

Name: An activity-based costing system involves identifying the activity that causes the incurrence of a cost; this activity is known as a: A)cost driver. B)cost applier. C)direct cost. D)cost object.
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Question

Quizplus · Accepted Answer

A cost driver is the activity that causes the incurrence of a cost in an activity-based costing system.

An Activity-Based Costing System Involves Identifying the Activity That Causes